 |
December 28, 2007 |
|
|
|
 |
SHINKI CO: Solid Financial State Cues JCR to Up Rating to BBB- Japan Credit Rating Agency, Ltd. has removed ratings on Shinki Co., Ltd from Credit Monitor and has upgraded them to BBB- with Negative outlook, preliminary BBB-, BBB- and J-2 ratings for senior debts, shelf registration, bonds and CP program with maximum amount increased from JPY8 billon to JPY20 billon from #BB+/Developing, preliminary #BB+/Developing, #BB+/Developing and #J-3/Developing, respectively. JCR placed ratings on Shinki under Credit Monitor with Developing direction on September 13, 2007, upon announcement of the Company's downward revision of the operating performance for the first half and full fiscal year ending March 31, 2008 along with announcement of its extinguishment of treasury stock and new common stock issue through allotments to its shareholders. JCR reviewed ratings for Shinki based on completion of capital increase through allotments to the shareholders and the operating results for the first half of fiscal year ending March 31, 2008 and then upgraded both long-term and CP ratings on the Company, removing them from Credit Monitor. The upgrade of the ratings this time reflects the strengthened financial footing through capital increase and the increased position in Shinsei Bank Group. On the other hand, there remain uncertainties about prospect for future business environment surrounding consumer finance industry against a background of reforms of regulations on money lending business, fundraising environment due to the stricter attitudes of financial institutions towards the industry and synergy to be created by coordination between Shinki and the bank group. Accordingly, JCR put rating outlook for Shinki Negative. Headquartered in Tokyo, Shinki Co., Ltd.-- http://www.shinki.co.jp -- is a Japan-based company principally engaged in the loan and insurance agency businesses and has two subsidiaries. The Company operates in two business segments. The Loan segment offers small funds to the general public, as well as leases business funds to small- and medium-sized enterprises and sole proprietors. The Insurance Agency segment provides life insurance and non-life insurance services. This concludes the Troubled Company Reporter's coverage of Shinki Co., Ltd. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
